NYSE · Industrials

Emerson Electric Co.

EMR · Specialty Industrial Machinery

$136.19

▼ -1.26 (-0.92%)

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Mr. Market is currently offering Emerson Electric Co. at $136.19.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 52.8%

Operating Margin 19.6%

Net Income Margin 12.7%

Fin. Health F

Years to Pay Off Debt 6.0 yrs

Working Capital vs Long-Term Debt -$9.5B

Working Capital -$1.2B

Valuation F

Margin of Safety 0.0%

Price-to-Book 3.77x

Cash Flow A

Free Cash Flow $2.7B

CapEx % of Net Income 18.8%

Owner Earnings $4.2B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $76.5B

Enterprise Value $89.6B

P/E (TTM) 33.38

Dividend Yield 1.56%

Exchange NYSE

Key Margins

Gross Profit 52.8%

Operating Margin 19.6%

Net Margin 12.7%

Company Info

Sector Industrials

Industry Specialty Industrial Machinery

Employees 71000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Emerson Electric Co. at $136.19.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $136.19, the stock trades at a 138% premium to its Graham Number of $57.28. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Emerson Electric Co.

Emerson Electric Co., a technology and software company, provides various solutions in the Americas, Asia, the Middle East, Africa, and Europe. It operates through Final Control, Measurement & Analytical, Discrete Automation, Safety & Productivity, Control Systems & Software, and Test & Measurement segments. The Final Control segment provides control valves, isolation valves, shutoff valves, pressure relief valves, pressure safety valves, actuators, and regulators for process and hybrid industries under Anderson Greenwood, Bettis, Crosby, Fisher, Keystone, KTM, and Vanessa brands. The Measurement & Analytical segment supplies intelligent instrumentation measuring the physical properties of liquids or gases, such as pressure, temperature, level, flow, acoustics, corrosion, pH, conductivity, water quality, toxic gases, and flame under the Flexim, Micro Motion, and Rosemount brands. The Discrete Automation segment includes solenoid valves, pneumatic valves, valve position indicators, pneumatic cylinders and actuators, air preparation equipment, pressure and temperature switches, electric linear motion solutions, programmable automation control systems and software, electrical distribution equipment, and materials joining solutions used primarily in discrete industries under the Afag, Appleton, ASCO, Aventics, Branson, Movicon, PACSystems, SolaHD, TESCOM, and TopWorx brands. The Safety & Productivity segment delivers tools for professionals and homeowners that support infrastructure, promote safety, and enhance productivity under the Greenlee, Klauke, ProTeam, and RIDGID brands. The Control Systems & Software segment provides control systems and software that control plant processes by collecting and analyzing information from measurement devices in the plant under the DeltaV and Ovation brands. The Test & Measurement offers software-connected automated test and measurement systems. The company was incorporated in 1890 and is headquartered in Saint Louis, Missouri.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022
Gross Profit %	52.8% ▲	50.8%	49.0%	45.7%
Operating Margin %	19.6% ▲	15.2%	18.2%	17.1%
Net Income %	12.7% ▲	11.3%	87.2%	23.4%
Diluted EPS	4.04 ▲	3.43	22.88	5.41

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$42.0B	$44.2B	$42.7B	$35.7B	N/A
Total Debt	$13.8B ↑	$8.4B	$8.6B	$10.7B	N/A
Working Capital	-$1.2B ▼	$4.5B	$8.8B	$729M	N/A
Years to Pay Debt	6.00	4.25	0.65	3.31	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$2.7B ▼	$2.9B	$274M	$2.6B	N/A
Owner Earnings	$4.2B	$4.1B	$14.6B	$4.4B	N/A
CapEx % of Net Income	18.8%	21.3%	2.7%	9.3%	N/A

Income Statement

	2025	2024	2023	2022
Tax Effect Of Unusual Items	-104,754	-88,374	-37,349	-63,958
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	5,281,000	4,461,000	4,384,000	3,785,000
Total Unusual Items	-442,000	-429,000	-169,000	-283,000
Total Unusual Items Excluding Goodwill	-442,000	-429,000	-169,000	-283,000
Net Income From Continuing Operation Net Minority Interest	2,285,000	1,618,000	2,280,000	1,884,000
Reconciled Depreciation	1,518,000	1,689,000	1,051,000	842,000
Reconciled Cost Of Revenue	7,863,000	7,995,000	7,169,000	6,992,000
EBITDA	4,839,000	4,032,000	4,215,000	3,502,000
EBIT	3,321,000	2,343,000	3,164,000	2,660,000
Net Interest Income	-237,000	-89,000	7,000	-194,000
Interest Expense	387,000	323,000	261,000	228,000
Interest Income	150,000	234,000	268,000	34,000
Normalized Income	2,622,246	1,958,626	2,411,651	2,103,042
Net Income From Continuing And Discontinued Operation	2,293,000	1,968,000	13,219,000	3,231,000
Total Expenses	14,484,000	14,826,000	12,406,000	11,448,000
Diluted Average Shares	566,700	574,000	577,300	596,300
Basic Average Shares	562,800	570,200	572,000	591,400
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	2,293,000	1,968,000	13,219,000	3,231,000
Net Income Common Stockholders	2,293,000	1,968,000	13,219,000	3,231,000
Net Income	2,293,000	1,968,000	13,219,000	3,231,000
Minority Interests	47,000	13,000	19,000	1,000
Net Income Including Noncontrolling Interests	2,246,000	1,955,000	13,200,000	3,230,000
Net Income Discontinuous Operations	8,000	350,000	10,939,000	1,347,000
Net Income Continuous Operations	2,238,000	1,605,000	2,261,000	1,883,000
Tax Provision	696,000	415,000	642,000	549,000
Pretax Income	2,934,000	2,020,000	2,903,000	2,432,000
Other Income Expense	-361,000	-557,000	137,000	270,000
Other Non Operating Income Expenses	81,000	-207,000	145,000	100,000
Special Income Charges	-350,000	-324,000	-188,000	-301,000
Gain On Sale Of Business	0	0	-47,000	-135,000
Restructuring And Mergern Acquisition	350,000	324,000	141,000	166,000
Earnings From Equity Interest	0	79,000	161,000	453,000
Gain On Sale Of Security	-92,000	-105,000	19,000	18,000
Net Non Operating Interest Income Expense	-237,000	-89,000	7,000	-194,000
Interest Expense Non Operating	387,000	323,000	261,000	228,000
Interest Income Non Operating	150,000	234,000	268,000	34,000
Operating Income	3,532,000	2,666,000	2,759,000	2,356,000
Operating Expense	5,987,000	6,219,000	4,668,000	3,950,000
Depreciation Amortization Depletion Income Statement	884,000	1,077,000	482,000	336,000
Depreciation And Amortization In Income Statement	884,000	1,077,000	482,000	336,000
Amortization	884,000	1,077,000	482,000	336,000
Amortization Of Intangibles Income Statement	884,000	1,077,000	482,000	336,000
Selling General And Administration	5,103,000	5,142,000	4,186,000	3,614,000
General And Administrative Expense	5,103,000	5,142,000	4,186,000	3,614,000
Other Gand A	5,103,000	5,142,000	4,186,000	3,614,000
Gross Profit	9,519,000	8,885,000	7,427,000	6,306,000
Cost Of Revenue	8,497,000	8,607,000	7,738,000	7,498,000
Total Revenue	18,016,000	17,492,000	15,165,000	13,804,000
Operating Revenue	18,016,000	17,492,000	15,165,000	13,804,000

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	390,600	383,200	381,400	362,000
Ordinary Shares Number	562,800	570,200	572,000	591,400
Share Issued	953,400	953,400	953,400	953,400
Net Debt	11,572,000	4,099,000	106,000	8,570,000
Total Debt	13,759,000	8,356,000	8,561,000	10,686,000
Tangible Book Value	-7,369,000	-6,867,000	-54,000	-10,154,000
Invested Capital	33,398,000	29,323,000	28,846,000	20,738,000
Working Capital	-1,214,000	4,450,000	8,787,000	729,000
Net Tangible Assets	-7,369,000	-6,867,000	-54,000	-10,154,000
Capital Lease Obligations	643,000	669,000	404,000	312,000
Common Stock Equity	20,282,000	21,636,000	20,689,000	10,364,000
Total Capitalization	28,601,000	28,791,000	28,299,000	18,623,000
Total Equity Gross Minority Interest	20,298,000	27,509,000	26,598,000	16,316,000
Minority Interest	16,000	5,873,000	5,909,000	5,952,000
Stockholders Equity	20,282,000	21,636,000	20,689,000	10,364,000
Gains Losses Not Affecting Retained Earnings	-821,000	-868,000	-1,253,000	-1,485,000
Other Equity Adjustments	-821,000	-868,000	-1,253,000	-1,485,000
Treasury Stock	20,062,000	18,972,000	18,667,000	16,738,000
Retained Earnings	40,603,000	40,830,000	40,070,000	28,053,000
Additional Paid In Capital	85,000	169,000	62,000	57,000
Capital Stock	477,000	477,000	477,000	477,000
Common Stock	477,000	477,000	477,000	477,000
Total Liabilities Net Minority Interest	21,666,000	16,737,000	16,148,000	19,356,000
Total Non Current Liabilities Net Minority Interest	11,869,000	10,995,000	11,116,000	11,579,000
Other Non Current Liabilities	756,000	725,000	698,000	700,000
Liabilities Heldfor Sale Non Current			0	167,000
Employee Benefits	467,000	466,000	435,000	427,000
Non Current Pension And Other Postretirement Benefit Plans	467,000	466,000	435,000	427,000
Non Current Deferred Liabilities	1,822,000	2,138,000	1,969,000	1,714,000
Non Current Deferred Taxes Liabilities	1,822,000	2,138,000	1,969,000	1,714,000
Long Term Debt And Capital Lease Obligation	8,824,000	7,666,000	8,014,000	8,571,000
Long Term Capital Lease Obligation	505,000	511,000	404,000	312,000
Long Term Debt	8,319,000	7,155,000	7,610,000	8,259,000
Long Term Provisions					256,000
Current Liabilities	9,797,000	5,742,000	5,032,000	7,777,000
Other Current Liabilities				1,348,000
Current Deferred Liabilities	1,031,000	1,043,000
Current Deferred Revenue	1,031,000	1,043,000
Current Debt And Capital Lease Obligation	4,935,000	690,000	547,000	2,115,000
Current Capital Lease Obligation	138,000	158,000
Current Debt	4,797,000	532,000	547,000	2,115,000
Other Current Borrowings	4,797,000	532,000	546,000	516,000
Commercial Paper			1,000	1,599,000	334,000
Pensionand Other Post Retirement Benefit Plans Current	740,000	706,000
Current Provisions	90,000	82,000
Payables And Accrued Expenses	3,001,000	3,221,000	4,485,000	4,314,000
Current Accrued Expenses	1,487,000	1,299,000	3,210,000	3,038,000
Payables	1,514,000	1,922,000	1,275,000	1,276,000
Total Tax Payable	130,000	587,000
Income Tax Payable	130,000	587,000
Accounts Payable	1,384,000	1,335,000	1,275,000	1,276,000
Total Assets	41,964,000	44,246,000	42,746,000	35,672,000
Total Non Current Assets	33,381,000	34,054,000	28,927,000	27,166,000
Other Non Current Assets	238,000	238,000	2,566,000	4,409,000
Defined Pension Benefit	1,229,000	1,194,000
Non Current Deferred Assets	79,000	64,000
Non Current Deferred Taxes Assets	79,000	64,000
Non Current Note Receivables			3,255,000	0
Non Current Accounts Receivable	676,000	556,000
Investments And Advances		0	3,255,000	0
Long Term Equity Investment		0	3,255,000	0
Goodwill And Other Intangible Assets	27,651,000	28,503,000	20,743,000	20,518,000
Other Intangible Assets	9,458,000	10,436,000	6,263,000	6,572,000
Goodwill	18,193,000	18,067,000	14,480,000	13,946,000
Net PPE	3,508,000	3,499,000	2,363,000	2,239,000
Accumulated Depreciation	-3,537,000	-3,378,000	-3,161,000	-3,151,000
Gross PPE	7,045,000	6,877,000	5,524,000	5,390,000
Construction In Progress	314,000	321,000	283,000	390,000
Other Properties	637,000	692,000
Machinery Furniture Equipment	3,694,000	3,538,000	3,228,000	3,300,000
Buildings And Improvements	2,127,000	2,048,000	1,758,000	1,500,000
Land And Improvements	273,000	278,000	255,000	200,000
Current Assets	8,583,000	10,192,000	13,819,000	8,506,000
Other Current Assets	1,725,000	1,497,000	1,244,000	1,301,000
Assets Held For Sale Current			0	1,398,000
Inventory	2,213,000	2,180,000	2,006,000	1,742,000
Finished Goods	520,000	512,000	446,000	417,000
Raw Materials	1,693,000	1,668,000	1,560,000	1,325,000
Receivables	3,101,000	2,927,000	2,518,000	2,261,000
Accounts Receivable	3,101,000	2,927,000	2,518,000	2,261,000
Allowance For Doubtful Accounts Receivable	-123,000	-121,000	-100,000	-100,000
Gross Accounts Receivable	3,224,000	3,048,000	2,618,000	2,361,000
Cash Cash Equivalents And Short Term Investments	1,544,000	3,588,000	8,051,000	1,804,000
Cash And Cash Equivalents	1,544,000	3,588,000	8,051,000	1,804,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	2,667,000	2,913,000	274,000	2,623,000
Repurchase Of Capital Stock	-1,167,000	-643,000	-2,214,000	-500,000
Repayment Of Debt	-5,421,000	-889,000	-3,637,000	-1,687,000
Issuance Of Debt	10,662,000	322,000	395,000	5,378,000
Capital Expenditure	-431,000	-419,000	-363,000	-299,000
End Cash Position	1,544,000	3,588,000	8,051,000	1,804,000
Beginning Cash Position	3,588,000	8,051,000	1,804,000	2,354,000
Effect Of Exchange Rate Changes	-39,000	20,000	18,000	-186,000
Changes In Cash	-2,005,000	-4,483,000	6,229,000	-364,000
Financing Cash Flow	-4,510,000	-2,455,000	-6,823,000	2,048,000
Cash Flow From Continuing Financing Activities	-4,510,000	-2,455,000	-6,823,000	2,048,000
Net Other Financing Charges	-7,392,000	-44,000	-169,000	80,000
Cash Dividends Paid	-1,192,000	-1,201,000	-1,198,000	-1,223,000
Common Stock Dividend Paid	-1,192,000	-1,201,000	-1,198,000	-1,223,000
Net Common Stock Issuance	-1,167,000	-643,000	-2,214,000	-500,000
Common Stock Payments	-1,167,000	-643,000	-2,214,000	-500,000
Net Issuance Payments Of Debt	5,241,000	-567,000	-3,242,000	3,691,000
Net Short Term Debt Issuance	4,200,000	-20,000	-1,583,000	1,238,000
Short Term Debt Payments	-4,918,000	-342,000	-1,978,000	-1,165,000
Short Term Debt Issuance	9,118,000	322,000	395,000	2,403,000
Net Long Term Debt Issuance	1,041,000	-547,000	-1,659,000	2,453,000
Long Term Debt Payments	-503,000	-547,000	-1,659,000	-522,000
Long Term Debt Issuance	1,544,000	0	0	2,975,000
Investing Cash Flow	-593,000	-5,360,000	12,415,000	-5,334,000
Cash From Discontinued Investing Activities	0	3,436,000	12,530,000	350,000
Cash Flow From Continuing Investing Activities	-593,000	-8,796,000	-115,000	-5,684,000
Net Other Investing Changes	-125,000	-114,000	777,000	-138,000
Net Investment Purchase And Sale		79,000	176,000	438,000	0
Sale Of Investment		79,000	176,000	438,000	0
Net Business Purchase And Sale	-37,000	-8,263,000	-529,000	-5,685,000
Sale Of Business	0	79,000	176,000	17,000
Purchase Of Business	-37,000	-8,342,000	-705,000	-5,702,000
Capital Expenditure Reported	-431,000	-419,000	-363,000	-299,000
Operating Cash Flow	3,098,000	3,332,000	637,000	2,922,000
Cash From Discontinued Operating Activities	-578,000	15,000	-2,073,000	874,000
Cash Flow From Continuing Operating Activities	3,676,000	3,317,000	2,710,000	2,048,000
Change In Working Capital	-9,000	-151,000	-148,000	-312,000
Change In Other Current Assets	-152,000	-149,000	-1,000	-56,000
Change In Payables And Accrued Expense	315,000	-25,000	204,000	221,000
Change In Accrued Expense	281,000	-9,000	221,000	74,000
Change In Payable	34,000	-16,000	-17,000	147,000
Change In Account Payable	34,000	-16,000	-17,000	147,000
Change In Inventory	-1,000	122,000	-160,000	-334,000
Change In Receivables	-171,000	-99,000	-191,000	-143,000
Other Non Cash Items	-276,000	-169,000	-429,000	4,000
Stock Based Compensation	263,000	260,000	250,000	125,000
Asset Impairment Charge		231,000	0	0
Depreciation Amortization Depletion	1,518,000	1,689,000	1,051,000	842,000
Depreciation And Amortization	1,518,000	1,689,000	1,051,000	842,000
Amortization Cash Flow	1,174,000	1,366,000	764,000	530,000
Amortization Of Intangibles	1,174,000	1,366,000	764,000	530,000
Depreciation	344,000	323,000	287,000	312,000
Operating Gains Losses	-58,000	83,000	-275,000	-494,000
Pension And Employee Benefit Expense	-58,000	-117,000	-114,000	-41,000
Gain Loss On Investment Securities		200,000	-161,000	-453,000
Gain Loss On Sale Of Business				-939,000	0
Net Income From Continuing Operations	2,238,000	1,605,000	2,261,000	1,883,000

These metrics estimate what Emerson Electric Co. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$57.28

Margin of Safety

Market Cap ÷ Company Value

1.41

P/B Ratio

3.77

Warren's Owner Earnings

$4.2B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$18.0B

vs > $1.5B revenue

❌ Strong Financial Condition

0.88x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

1.56%

vs Uninterrupted dividends

❌ Earnings Growth

-25.3% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

33.4x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

3.77x P/B (P/E×P/B: 126.0)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-23.28

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$69.83

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	18.8%	21.3%	2.7%	9.3%	N/A
Repurchase of Capital Stock	-$1.2B	-$643M	-$2.2B	-$500M	N/A
Free Cash Flow	$2.7B ▼	$2.9B ▲	$274M ▼	$2.6B •	N/A •
Warren's Owner Earnings	$4.2B	$4.1B	$14.6B	$4.4B	N/A

Peers & Industry

No auto-detected peers for Specialty Industrial Machinery. You can manually compare EMR against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.22%

Low — management has little skin in the game

Return on Equity (ROE)

11.3%

Adequate — returns are moderate

Return on Assets (ROA)

5.5%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$1.2B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+64.7% YoY

Debt is growing — management is leveraging up

Leadership Team

Surendralal Lanca Karsanbhai

President, CEO & Director

Age 55

Pay: $5,789,937

0.253% of net income

Michael Baughman

Executive VP, Chief Accounting Officer & CFO

Age 60

Pay: $2,353,975

0.103% of net income

Ram Krishnan

Executive VP & COO

Age 53

Pay: $2,839,564

0.124% of net income

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	9.77%	54,909,180
Blackrock Inc.	7.23%	40,624,262
State Street Corporation	4.89%	27,483,440
JPMORGAN CHASE & CO	3.43%	19,283,287
Bank of America Corporation	3.14%	17,639,789
Wellington Management Group, LLP	2.31%	12,971,878
Geode Capital Management, LLC	2.19%	12,328,324
Morgan Stanley	2.10%	11,806,049

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

1.25

Moderate volatility — moves slightly more than market

Short Interest

2.2% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.69x

Conservative balance sheet — low financial risk

Current Ratio

0.84x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $106.53 Current: $136.19 High: $165.15

Currently at 51% of 52-week range

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